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Standard Motor (SMP) Beats on Q1 Earnings and Revenues

Share price of Standard Motor Products Inc.SMP increased 7.2% to $37.53 after the company recorded a significant 37.5% improvement in adjusted earnings per share to 55 cents in the first quarter of 2016 from 40 cents earned in the prior-year quarter. Earnings also exceeded the Zacks Consensus Estimate of 48 cents. Earnings from continuing operations increased to $12.6 million from $9.2 million in the year-ago quarter.

Standard Motor Products Inc. (SMP) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

Earnings from continuing operations, on a reported basis, amounted to $12.7 million or 55 cents per share, compared with $9.3 million or 40 cents in the prior-year quarter.

Total revenue rose 5% to $238.9 million from $227.6 million a year ago, surpassing the Zacks Consensus Estimate of $237 million

Gross profit increased 14.3% to $73 million (30.6% of sales) from $63.9 million (28.1% of sales) in the first quarter of 2015. Operating income increased significantly by 34.3% to $20 million from $14.9 million in the year-ago quarter.

Segment Results

Revenues at the Engine Management segment went up 2% to $180.7 million in the reported quarter from $177.1 million a year ago. The improvement was in line with the projection of a low single-digit increase. Operating profit was $24.2 million (13.4% of sales) compared with $21.7 million (12.3% of sales) in the prior-year quarter.

Revenues at the Temperature Control segment increased 16.5% to $56.8 million. This improvement was driven by higher pre-season orders. The segment recorded an operating profit of $2.4 million (4.2% of sales), as against an operating loss of $1.4 million (2.8% of sales) in first-quarter 2015.

Revenues at the All Other segment decreased to $1.5 million from $1.8 million a year ago. The segment recorded an operating loss of $6.6 million, wider than an operating loss of $5.6 million in the first quarter of 2015.

Financial Position

Standard Motor had cash balance of $13.4 million as of Mar 31, 2016, compared with $18.8 million as of Dec 31, 2015. Long-term debt of the company was $200,000 as of Mar 31, 2016, compared with $78,000 as of Dec 31, 2015.

In the first quarter of 2016, Standard Motor had cash outflow of $1.3 million from operating activities compared with $14.2 million in the prior-year quarter. Capital expenditures were in line with the year-ago level of $4.1 million.

Dividend

Standard Motor's board approved a dividend of 17 cents per share. The dividend will be paid on Jun 1, to shareholders on record as of May 16, 2016.

Zacks Rank

Standard Motor currently carries a Zacks Rank #4 (Sell).

Some better-ranked automobile stocks include Lear Corp. LEA , Superior Industries International, Inc. SUP and Oshkosh Corporation OSK . All the three stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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